how to advise on custom build
What do you need to consider when it comes to advising on a custom build mortgage to ensure the product you are recommending is fit for purpose?
What to consider when your client is custom building.
First, you’ll need to find out at what stage your customer is buying their home.
Next, you’ll need to know how the developer wants to be paid? Every custom build site is different, but there are usually 4-5 pre-agreed points during the build when stage payments will become due.
Lastly, you will need to understand what stage the house will be built to – will it be fully finished to their specification by the developer, or is it a self-finish property where the property is built to wind and watertight and your they coordinate the internal fit out themselves along with the decorating.
WHAT STAGE IS YOUR CUSTOMER BUYING THEIR CUSTOM BUILD HOME AT?
There are different points at which your customer can buy their custom build home. These might include purchasing at serviced plot, golden brick, self finish, land and build package or pre-designed customisable. BuildLoan can find the right mortgage for your customer’s bespoke home.
WHEN WILL THE DEVELOPER REQUIRE THEIR STAGE PAYMENTS TO BE MADE?
The custom build developer will usually specify 4-5 stages during the construction phase that payments will become due. Each custom build development is different, so it’s important to ask your customers to obtain this information before attempting to source a mortgage.
WHAT STAGE IS YOUR CUSTOMER'S HOME BEING BUILT TO?
Often customers can access discounted prices due to family members or friends being in the trades. For this reason, they may opt for a self finish property. But, you will also find customers that would rather the developer delivers their bespoke home to their exact specification. Check the level of work your clients will be doing themselves or with the help of family members.
Unicus makes it easier to source the right mortgage for your custom build clients.
When it comes to mortgages for a custom build project, there’s no one size fits all solution. Using Unicus, you can find a range of suitable products against which you can advise.